Consumer Spending Grows as Domestic VAT Collections, Retail Sales Reach GHS 6.4 Billion in May 2024
Consumer spending in Ghana demonstrated a robust uptick in May 2024, according to the latest Monetary Policy Report from the Bank of Ghana.
Total domestic VAT collections and retail sales reached GHS 6.4 billion, reflecting a positive performance compared to the same month in 2023.
Cumulatively, domestic VAT for the first five months of 2024 rose by 14.8 percent to GHS 6.22 billion, up from GHS 5.42 billion in the corresponding period last year.
Retail sales mirrored this trend, soaring by 25.5 percent year-on-year to GHS 200.27 million in May 2024, compared to GHS 159.57 million in May 2023.
Month-on-month, retail sales improved by 6.0 percent from GHS 188.87 million in April 2024, while cumulative retail sales for the first five months of 2024 increased by 19.1 percent.
However, the report also highlighted a decline in consumer and business confidence, as evidenced by recent surveys conducted in June 2024.
The Consumer Confidence Index fell to 81.2 from 87.7 in April 2024, primarily due to rising food prices and uncertainties surrounding future economic conditions.
Similarly, the Business Confidence Index decreased to 88.8 from 92.6, reflecting concerns among businesses about the cost implications of rapid exchange rate depreciation observed in May 2024.
These sentiment shifts align with the findings of Ghana’s Purchasing Managers’ Index (PMI), which dropped below the neutral threshold to 49.7 in June 2024, down from 51.6 in the previous month, signaling a slowdown in manufacturing activity.
